This file photo was taken on Sept 16, 2008 shows the logo of the Asian Development Bank (ADB) at its headquarters in Manila, capital of the Philippines. (PHOTO / XINHUA)

MANILA - Economies in the Pacific are projected to grow collectively by 3.3 percent in 2023 and 2.8 percent in 2024 as the subregion continues to recover from the COVID-19 pandemic, according to the latest Asian Development Bank (ADB) report released on Thursday.

In the Pacific Economic Monitor (PEM), Papua New Guinea (PNG), the subregion's largest economy, is projected to continue growth due to increased output outside the resource sector.

The outlook for the Pacific is subject to downside risks, such as sensitivity to international commodity prices and longstanding vulnerability to disasters. 

Leah Gutierrez, ADB Director General for the Pacific

Those tourism-driven economies, such as Fiji, the Cook Islands, and Samoa, will benefit from the lifting of travel restrictions along with increased public investment spending.

ALSO READ: ADB urges ASEAN to boost life quality for faster recovery

"The outlook for the Pacific is subject to downside risks, such as sensitivity to international commodity prices and longstanding vulnerability to disasters," said ADB Director General for the Pacific Leah Gutierrez.

ALSO READ: Economist: China 'a key part of value chain' in Asia-Pacific

She said the multilateral lender will work with the Pacific economies to "mitigate these risks, restore development gains, and support inclusive, sustainable growth in the subregion."

READ MORE: ADB: ASEAN must strengthen position in global value chains

The PEM is a biannual review by the ADB on economic developments and policy issues of 14 developing economies in the Pacific. The latest review explores the development impact of the pandemic and challenges to recovery and fiscal sustainability.